Agency and Employer Liability

Confused by legal terms? Imagine having a chance to get answers from a lawyer who simplifies jargon and speaks in clear language. Andrew Kryder, Esq., founding partner of the personal injury law firm, The Kryder Law Group, LLC Accident and Injury Lawyers has done that for you with a glossary of legal terms. Legal vocabulary is full of terminology—such as agency and employer liability—that can make conversations with an attorney overwhelming. Our aim is to cut through the jargon, turning complex terms and legal doctrine into everyday language.

What Is Agency?

Agency, in legal terms, is a relationship where one person, the agent, is authorized to act on behalf of another person, known as the principal, acting in company business matters or other transactions.

It can also be referred to as employee-employer relationship and respondeat superior, in Latin. These terms are used somewhat interchangeably and it means an employer or a company can be held responsible for the actions of their individual employees.

Andrew Kryder, Esq., Chicago Personal Injury Lawyer, Explains Agency

Meet Andy Kryder, a skilled personal injury attorney known for his ability to simplify legal concepts, making them easy to grasp. “We’re going to discuss legal theory in a few terms, give some examples, and try to explain each of those different concepts so that you can easily understand them,” he begins.

Who Are the Two Main Players in Agency and Employer?

Andy explains that there are two main players in the agency relationship: the principal and the agent.

The Principal

“One way to think about the principle,” he tells us, “is the person who’s in charge. They’re giving direction. They’re giving orders.”

The Agent

“The agent,” on the other hand, “is the person who’s receiving those orders, and then fulfilling those orders,” Andy says.

“The principle is usually the boss, the agent usually the employee,” Andy summarizes, “one is directing the other, and one is receiving those directions, and then carrying them out.”

What Happens If the Agent Is Negligent?

The law holds employers accountable for the actions of their employees during the course of their employment. Andy explains, “If those directions are carried out in a negligent fashion, then the principle can be held responsible for the actions of the agent.”

Examples of Agency

Andy gives examples of agents: “A doctor might be an agent of the hospital, a truck driver might be an agent of the company that they’re driving for, a construction worker operating equipment on a construction site might be an agent of the construction company, a police officer might be an agent of the police department.”

Basically, Andy tells us, “If the agent messes up or is negligent in some way, then the principle can be held accountable for the agent’s actions.”

What Is Vicarious Liability?

Vicarious liability is a legal concept where one party, often an employer, is held accountable for the wrongful actions of another party, such as an employee, when those actions occur within the scope of employment. This principle is based on the idea that employers have control over their employees’ actions—are vicariously liable—and should face consequences for work-related misconduct of problem employees.

What Is the Difference Between an Agent and an Independent Contractor?

According to Illinois Law, an independent contractor, in contrast to an agent, functions independently and does not take direct instructions from a principal. Typically, the principal is not held liable for the contractor’s actions.

Andy points out, the difference between an employee and an independent contractor “usually centers around whether the principal has . . . control over the person.” If the principal has control, they are an employee or an agent. If the principal does not control the person and there is a distinct line separating the two of them, “that person could be an independent contractor.”

When Is an Employer Liable for an Employee’s Negligence?

In essence, an employer can be responsible for an employee’s actions of negligence if the employee was performing their job duties and following the employer’s instructions when the negligent act happened.

When Is an Employer NOT Liable for an Employee’s Negligence?

Independent contractors work autonomously, free from the direct control or supervision of their employers. As a result, employers are generally not held liable for the contractors’ actions.

Andy stresses, the operant question is, “Did the person have the freedom to do the work or whatever was required on their own, or did they have to take the direction from the director or the principal?”

What Do I Do If I have Been Injured Due to Someone Else’s Negligence?

If you have been injured through no fault of your own due to someone else’s negligent acts, seek legal guidance promptly. Injuries can lead to unexpected medical expenses, lost wages, and prolonged physical and emotional suffering.

An experienced attorney can navigate the complexities of personal injury law and help you secure the compensation you deserve.